Chapter 7 - Products and Brands

Question 1

What 5 things make a brand?

Answer 1

Brand name
logos and symbols
slogans
characters
jingles

Question 2

What is brand equity

Answer 2

Set of assets and liabilities linked to a brand

Question 3

What are the 4 aspects of brand equity

Answer 3

Awareness
Perceived value
Brand associations
Loyalty

Question 4

What is awareness?

Answer 4

• Measures how many consumers are familiar with the brand

- Repeated exposures

Question 5

What is perceived value?

Answer 5

• The relationship between a product’s benefits and its costs for consumers
• Consumers determine the value in relationship to that of its close competitors

Question 6

What is brand association?

Answer 6

• Mental links that consumers make between a brand and its key product attributes
• Brand personality

Question 7

What is brand loyalty?

Answer 7

• Occurs when a consumer buys the same brand’s product repeatedly over time rather than buy from multiple suppliers within the same category
• Loyal consumers are often less sensitive to price

Question 8

What are the 4 brand strategy decisions?

Answer 8

Brand Positioning
Brand name selection
Brand sponsorship
Brand development

Question 9

What is brand positioning? (what are the 3 levels?)

Answer 9

Marketers can position brands clearly in customers’ minds at any of three levels

• Attributes
• Benefits
• Values

Question 10

What are the 6 characteristics of a good brand name?

Answer 10

• Suggests the product’s benefits and qualities
• Is easy to pronounce, recognize, and remember
• Is distinctive
• Is extendable
• Translates easily into foreign languages
• Is capable of registration and legal protection

Question 11

What are the 4 aspects of brand sponsorship?

Answer 11

National Brands
Store Brands
Licensing
Co-branding

Question 12

What is licensing?

Answer 12

A contractual agreement between firms whereby one firm allows another to use its brand name, logo, and/or symbol in exchange for a fee

Question 13

What are the pros and cons of licensing?

Answer 13

Pros: Visibility, increased awareness, additional revenue

Cons: Improper use of brand, dilution

Question 14

What is co-branding?

Answer 14

-The practice of using the established brand names of different companies on the same product

Question 15

What are 2 adv of co-branding?

Answer 15

Takes advantage of the strengths of two brands

Allows a company to expand its brand into a new product category

Question 16

What is a brand development “line extension”

Answer 16

Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors within a product category

Question 17

What is a brand development “brand extension”?

Answer 17

Extending an existing brand name to new product categories

Question 18

What are 3 things to consider when extending your brand?

Answer 18

Evaluate the fit between the brand and the extension

Evaluate consumer perceptions of the brand attributes and seek out extensions with similar attributes

Refrain from extending to too many products

Question 19

what is brand dilution

Answer 19

Occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

Question 20

Packaging is critical to…

Answer 20

The firm’s brand positioning and shelf appeal

Question 21

Label information is determined by…

Answer 21

regulations